Following the introduction to blockchain, in this article we are going to answer 12 Basic Questions About blockchain, stay tuned to BingMag.
1. What is blockchain?
Blockchain is a distributed database that is secured by sophisticated mathematical and cryptographic algorithms. This network allows its users to create a reliable and unchanging record of the events of a transaction without the need for an intermediary. But work is not limited to this, and blockchains can perform a variety of tasks beyond transaction settlement, such as smart contracts.
Smart contracts are digital contracts that run in the form of programming codes that allow the parties to the contract Trade with each other based on pre-determined terms within the framework of the contract. A smart contract can be executed without the need for an individual or an institution. Therefore, it can be more secure and less expensive. In contrast, issues such as the possibility of human error (when writing contract codes), the current non-transparent legal rules in different countries regarding this form of contract and the high cost of writing it by programmers are among the most important disadvantages of smart contracts. Some types of digital currencies offer implementations for smart contracts. Attacks and risk reduction are. The first Blockchain was Bitcoin blockchain, the culmination of more than a century of advances in cryptography and database technology.
2. What is Blockchain software?
Blockchain software is like any other software. The first Blockchain software in this field was the Bitcoin software, which was released as open source software and made available to the public for use or modification. A wide range of efforts have been made across the Blockchain ecosystem to improve the core Bitcoin software. Atrium has developed its own open source Blockchain software, and some other Blockchain software is proprietary and not available to the public.
3- What is a Blockchain database?
In the past, the database consisted of a centralized central server, which was the sole reference for database security. One of the biggest problems with such databases is that in the event of a security problem on the main server, the database would be in serious danger.
The decentralized architecture of Blockchain databases as a way A solution emerged for many of the weaknesses of centralized database architecture. A Blockchain network consists of a large number of nodes or nodes distributed and volunteer participants who must reach a consensus on what happened and maintain a single transaction record.
4. How does the Blockchain work?
When a transaction occurs in a Blockchain network, it is grouped in a secure "block" encrypted with other transactions that occur over a period of time. The block is then broadcast on the network. A Blockchain network consists of nodes or participants that validate and transmit transaction information.
Transaction blocks are validated by participants named Miner, who use computing power to solve a hash cryptocurrency puzzle. Transactions are used. The first miner to solve the hash block and validate it will be rewarded. Each validated block attaches to the previously validated block and forms a chain of blocks.
One of the most important cryptographic factors in blockchains is the hash function. A hash is a function that converts an input of letters and numbers into a fixed-length encrypted output. Hash functions are used all over the Internet to securely store passwords, find duplicate records, quickly save and retrieve information, and so on. The hash is created using an algorithm that is essential for Blockchain management in the cryptocurrency space and is in fact the foundation of the Blockchain network.
5. What are Blockchain applications?
Blockchain applications are comparable to conventional software, except that they implement decentralized architecture and encrypted ecosystems to increase security, build trust, asset tokens, and design network incentives.
6. Decentralized Finance (DeFi) What?
DeFi Decentralized Finance, also known as Open Finance, refers to a change in the economic paradigm. Which is activated by decentralized technologies, especially Blockchain networks. Defa indicates a change from a centralized financial system affiliated with a central institution to an open source, secure and free system From efficient and secure payment networks to US dollar-based auto loans and stable coins, decentralized financing has emerged as one of the most active sectors in the Blockchain space. Some of the defining factors of a DeFi application include unlicensed architecture, clear and verifiable code, and the ability to work with other DeFi products.
7. What are the benefits of Blockchain technology?
Since Blockchain network data is typically stored on thousands of devices on a distributed network of nodes, this system is essentially And the data is stable against any technical defects and malicious attacks. Each node is able to duplicate and store a copy of the database, so offline network node does not affect the availability or security of that network.
It is almost impossible. In fact, this means that once the data is registered on the network, it is very difficult to delete or change it. This makes Blockchain an outstanding and valuable technology for storing financial records or any other data that requires tracking and auditing, as any changes in this platform are tracked and recorded permanently in the distributed general ledger. It is worth noting that the feature of transparency can be considered as another advantage and strength of Blockchain technology.
In most traditional payment systems, performing a transaction through an intermediary such as a bank, credit card company or affiliate payment service provider Is. But in the use of Blockchain technology, intermediaries are practically eliminated and there is no need for them to be present in the network. Because the distributed network of nodes approves the transactions through a process called mining. Therefore, the Blockchain network is often referred to as a "reliable and immediate" system.
8. What do blocks in a Blockchain do?
The word "blockchain" in A Blockchain refers to a block of transactions distributed over a network. "Chain" refers to a string of these blocks. When a new block of transactions is approved by the network, it connects to the end of an existing chain. This chain of blocks is a growing office of network-approved transactions. We call this unique and agreed transaction history blockchain. Only one block can exist in a given chain. There are several ways to add new blocks to an existing chain called "proof", proof of work (PoW), proof of stock (PoS) and proof of credit (PoA). All include cryptographic algorithms with varying degrees of complexity.
9. What is the block time?
The time it takes to build a new block is called the block time. This time, along with the network hardness variable that keeps this time constant, is a parametric constant for each blockchain. In fact, it takes time to create the next block in a data chain, and it is a criterion for generating a new block in a Blockchain network. The time it takes to validate and block a bitcoin network is About 10 minutes, and once every two weeks the hardness of the network keeps this balance, and for the Atrium network it is About 13 seconds.
10. What is Distributed Ledger?
Distributed Ledger Is a database that is distributed between several nodes or computing devices. Each time a new version of the information is logged in, each node or device updates the previous version. All copies are the same in distributed general ledgers and there is no central server. How information storage and booklet management lies. For example, in the case of cryptocurrencies such as Bitcoin, each node (each participant in the system) has the original version of the booklet and can view its own transaction records.
To make any changes and create a transaction New on the network requires user approval and no one can change the system alone. Peer-to-peer system is used in distributed general offices. In a peer-to-peer (P2P) system, the structure of distributed offices is designed to eliminate the need for intermediaries such as banks.
11. What is Blockchain programming?
One of the key aspects that sets Blockchain programming apart from other Internet investments is its focus on security and cryptography. If you want to fully develop a new blockchain, you will probably need the C ++ programming language. But instead of developing a Blockchain from scratch, you may want to use text-based projects such as Bitcoin or Atrium. If you are planning to build a Smart Contract on the Atrium platform, you will need to learn the Solidarity programming language and if you are planning to develop projects such as Fabric Hyperlider in Mind you, you'll need programming languages like Go.
12. What is a private blockchain?
Private Blockchain is a type of licensed blockchain. In this network, participating nodes can join the Blockchain only if they obtain a license. Examples of private blockchains include platforms such as HyperLedger, Hashgraph, Corda, and others.